Building windows

Getting Results – Bringing a property out of bankruptcy

On behalf of our client California Mortgage and Realty’s CMR Mortgage Fund, JMBM real estate and bankruptcy lawyers closed a nearly $100 million loan to Halekua Development Corporation, an out-of-possession debtor in a Chapter 7 bankruptcy case. The loan enabled Halekua to redeem from its bankruptcy estate approximately 161 acres of land known as Royal Kunia Phase II, located 30 minutes west of Honolulu, that it owned when it entered bankruptcy nearly four years earlier. The loan also provides financing to Halekua for predevelopment and infrastructure costs as it develops a 2,000-home master-planned community on the site. The complex loan also involved issues of corporate organization, real estate transactions, and land use and environmental matters.